Correlation Between Jetwell Computer and Gigasolar Materials

Can any of the company-specific risk be diversified away by investing in both Jetwell Computer and Gigasolar Materials at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jetwell Computer and Gigasolar Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jetwell Computer Co and Gigasolar Materials, you can compare the effects of market volatilities on Jetwell Computer and Gigasolar Materials and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jetwell Computer with a short position of Gigasolar Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jetwell Computer and Gigasolar Materials.

Diversification Opportunities for Jetwell Computer and Gigasolar Materials

0.19

Correlation Coefficient

Jetwell Computer  Gigasolar Materials

Average diversification

The 3 months correlation between Jetwell and Gigasolar is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jetwell Computer Co and Gigasolar Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigasolar Materials and Jetwell Computer is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jetwell Computer Co are associated (or correlated) with Gigasolar Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigasolar Materials has no effect on the direction of Jetwell Computer i.e., Jetwell Computer and Gigasolar Materials go up and down completely randomly.

Pair Corralation between Jetwell Computer and Gigasolar Materials

Assuming the 90 days trading horizon Jetwell Computer Co is expected to generate 1.51 times more return on investment than Gigasolar Materials. However, Jetwell Computer is 1.51 times more volatile than Gigasolar Materials. It trades about 0.05 of its potential returns per unit of risk. Gigasolar Materials is currently generating about 0.0 per unit of risk. If you would invest  17,750  in Jetwell Computer Co on December 25, 2024 and sell it today you would earn a total of  1,050  from holding Jetwell Computer Co or generate 5.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jetwell Computer Co  vs.  Gigasolar Materials

Jetwell Computer

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jetwell Computer Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jetwell Computer may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Gigasolar Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gigasolar Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Gigasolar Materials is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Jetwell Computer and Gigasolar Materials

The main advantage of trading using opposite Jetwell Computer and Gigasolar Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jetwell Computer position performs unexpectedly, Gigasolar Materials can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gigasolar Materials will offset losses from the drop in Gigasolar Materials' long position.

The idea behind Jetwell Computer Co and Gigasolar Materials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.